A report commissioned by Macquarie Telecom claims that Australia is positioned to be a world leader in creating the jobs and industry of the 21st century by becoming a cloud computing hub.

However it says Australia must move quickly to seize opportunities and address some geographic disadvantages.

The report: 'The Potential for Cloud Computing Services in Australia' was written by Lateral Economics. It argues that Australia can capitalise on the potential for an on-shore cloud sector, providing cloud services to Australian (and global) organisations.

The report claims the prerequisites for success are: a vigorous strategy for investment; a legislative framework that continues to promote investment and protect data; and standards for contracts and for disclosure should data security be breached.

David Tudehope, CEO of Macquarie Telecom, said Australia deserved to become the natural choice for companies seeking secure cloud infrastructures and services, instead of betting on a future reliant on diminishing natural resources.

"Australia has everything needed to make this a global reality: the skills, the legal, political, and geographical certainties, as well as the assurance that data hosted here is secure. Powered by national initiatives such as the NBN, we now have the bandwidth and infrastructure to plug the world into Australia."

The report was launched by innovation minister, senator Kim Carr, who said: "The report identifies a number of areas for Government focus, to which the Commonwealth will give close consideration."

Tudehope added: "Now is the time to make the investment, to link all these natural advantages, and forge a strong coalition between the commercial sectors and government, to give companies based in Australia and the rest of the world the competitive option of choosing Australia to host their cloud infrastructures."

Release of the report co-incided with the announcement of the OzHub Coalition, a body founded by Macquarie Telecom, Fujitsu, InfoPlex and VMware, a body that aims to build local consumer and business confidence in cloud computing.